DIY Income: Using ETF Building Blocks to Generate Income
2020 was a difficult year for investors who rely on dividend income to support themselves financially. Central banks, including the European Central Bank and the Bank of England, ordered banks to suspend dividend payments when the pandemic struck and many other listed companies followed suit. How can investors generate income in the current climate?
In our latest whitepaper, we explore the ways in which income-seeking investors can build their own portfolios through an allocation to indexed ETF building blocks. To illustrate this approach, we have developed a stylised tactical asset allocation model, for both US and European investors, that targets income-generating building blocks through a momentum strategy.
This asset allocation approach will be known as the Dual Momentum Yield Approach (DMYA). In the whitepaper, we also compare the performance of this approach against active income funds.
Important information: This document has been issued by State Street Global Advisors Ireland (“SSGA”), regulated by the Central Bank of Ireland. Registered office address 78 Sir John Rogerson’s Quay, Dublin 2. Registered number 145221. T: +353 (0)1 776 3000. F: +353 (0)1 776 3300. Web: ssga.com.
SPDR ETFs is the exchange traded funds (“ETF”) platform of State Street Global Advisors and is comprised of funds that have been authorized by Central Bank of Ireland as open-ended UCITS investment companies.
State Street Global Advisors SPDR ETFs Europe I & SPDR ETFs Europe II plc issue SPDR ETFs, and is an open-ended investment company with variable capital having segregated liability between its sub-funds. The Company is organised as an Undertaking for Collective Investments in Transferable Securities (UCITS) under the laws of Ireland and authorised as a UCITS by the Central Bank of Ireland.
The information provided does not constitute investment advice as such term is defined under the Markets in Financial Instruments Directive (2014/65/EU) or applicable Swiss regulation and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell any investment. It does not take into account any investor‘s or potential investor‘s particular investment objectives, strategies, tax status, risk appetite or investment horizon. If you require investment advice you should consult your tax and financial or other professional advisor. All information is from SSGA unless otherwise noted and has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.
The information contained in this communication is not a research recommendation or ‘investment research’ and is classified as a ‘Marketing Communication’ in accordance with the Markets in Financial Instruments Directive (2014/65/EU) or applicable Swiss regulation. This means that this marketing communication (a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research (b) is not subject to any prohibition on dealing ahead of the dissemination of investment research.
All the index performance results referred to are provided exclusively for comparison purposes only. It should not be assumed that they represent the performance of any particular investment.
ETFs trade like stocks, are subject to investment risk and will fluctuate in market value. The investment return and principal value of an investment will fluctuate in value, so that when shares are sold or redeemed, they may be worth more or less than when they were purchased. Although shares may be bought or sold on an exchange through any brokerage account, shares are not individually redeemable from the fund. Investors may acquire shares and tender them for redemption through the fund in large aggregations known as “creation units.” Please see the fund’s prospectus for more details.
Concentrated investments in a particular sector or industry tend to be more volatile than the overall market and increases risk that events negatively affecting such sectors or industries could reduce returns, potentially causing the value of the Fund’s shares to decrease.
Equity securities may fluctuate in value in response to the activities of individual companies and general market and economic conditions.
Investing in foreign domiciled securities may involve risk of capital loss from unfavourable fluctuation in currency values, withholding taxes, from differences in generally accepted accounting principles or from economic or political instability in other nations.
The views expressed in this material are the views of the SPDR Model Portfolio Solutions Team through the period ended 14 May 2021 and are subject to change based on market and other conditions. This document contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected.
This information should not be considered a recommendation to invest in a particular sector or to buy or sell any security shown. It is not known whether the sectors or securities shown will be profitable in the future.
Standard & Poor’s, S&P and SPDR are registered trademarks of Standard & Poor’s Financial Services LLC (S&P); Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones); and these trademarks have been licenced for use by S&P Dow Jones Indices LLC (SPDJI) and sublicenced for certain purposes by State Street Corporation. State Street Corporation’s financial products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and third party licensors and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability in relation thereto, including for any errors, omissions, or interruptions of any index.
You should obtain and read the SPDR prospectus and relevant Key Investor Information Document (KIID) prior to investing, which may be obtained from ssga.com. These include further details relating to the SPDR funds, including information relating to costs, risks and where the funds are authorised for sale.
Investing involves risk including the risk of loss of principal.
The trademarks and service marks referenced herein are the property of their respective owners. Third party data providers make no warranties or representations of any kind relating to the accuracy, completeness or timeliness of the data and have no liability for damages of any kind relating to the use of such data.
The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA’s express written consent.
SPDR ETFs è la piattaforma di exchange traded fund ("ETF") di State Street Global Advisors ed include fondi autorizzati dalle Autorità Europee come fondi aperti d'investimento UCITS. Gli SPDR ETFs potrebbero non essere disponibili o adatti a lei.
Gli ETF sono negoziati come le azioni, sono soggette al rischio d'investimento, il loro valore di mercato fluttua e potrebbero essere negoziati a prezzi superiori od inferiori al loro valore patrimoniale netto. Le commissioni di intermediazione ed i costi dell'ETF ridurranno i rendimenti.
Variazioni sui tassi di cambio possono avere un effetto negativo sul valore, prezzo o rendita dell'investimento. Inoltre non ci sono garanzie che un ETF raggiungerà i suoi obiettivi d'investimento
LE QUOTE DEI FONDI DELLA SICAV SPDR® ETF, SSGA SPDR ETFS EUROPE I PLC E SSGA SPDR ETFS EUROPE II PLC POTREBBERO NON ESSERE DISPONIBILI O NON ADATTE A VOI.. LE OPINIONI ESPRESSE IN QUESTO SITO NON COSTITUISCONO UN CONSIGLIO DI INVESTIMENTO. IN CASO DI DUBBIO, SI RACCOMANDA DI RIVOLGERSI AD UN CONSULENTE INDIPENDENTE. LE INFORMAZIONI E LE OPINIONI CONTENUTE NEL PRESENTE SITO NON COSTITUISCONO UNA SOLLECITAZIONE O UN'OFFERTA ALL'ACQUISTO O ALLA VENDITA DELLE QUOTE DEI FONDI O DI QUALSIVOGLIA ALTRO STRUMENTO FINANZIARIO.
Standard & Poor's®, S&P® e SPDR® sono marchi registrati di Standard & Poor's Financial Services LLC (S&P); Dow Jones è un marchio registrato di Dow Jones Trademark Holdings LLC (Dow Jones); questi marchi registrati sono stati concessi in licenza d'uso a S&P Dow Jones Indices LLC (SPDJI) e in sottolicenza per fini specifici a State Street Corporation. I prodotti finanziari di State Street Corporation non sono sponsorizzati, sostenuti, venduti o promossi da SPDJI, Dow Jones, S&P, dalle loro rispettive affiliate e licenzianti terzi e nessuna delle parti citate rilascia dichiarazioni in merito all'opportunità di investire in tale/i prodotto/i, né è responsabile in relazione agli stessi, fra l'altro, per errori, omissioni o interruzioni di qualsiasi indice.
Gli SPDR ETFs possono essere offerti e venduti esclusivamente nelle giurisdizioni in cui sono stati preventivamente autorizzati, in accordo con le normative vigenti.
Informazioni relative al Messico
Le presenti informazioni non costituiscono e non sono da intendersi come la commercializzazione o l’offerta di titoli e, di conseguenza, non dovrebbero essere interpretate come tali. I Fondi indicati nella presente non sono stati e non saranno registrati ai sensi della legge messicana sul mercato dei valori mobiliari (Ley del Mercado de Valores) e non potranno essere oggetto di offerta pubblica o essere venduti negli Stati Messicani Uniti. La documentazione divulgativa relativa a uno qualsiasi dei suddetti Fondi non può essere distribuita pubblicamente in Messico e le azioni dei Fondi non possono essere scambiate in questo paese.
Si consiglia di procurarsi e leggere i Prospetti e i KIID relativi agli SPDR ETFs prima dell'investimento. Ulteriori informazioni e i prospetti aggiornati/KIID che descrivono le caratteristiche, i costi e i rischi degli SPDR ETFs sono disponibili per i residenti dei Paesi in cui gli SPDR ETFs sono autorizzati alla vendita sul sito spdrs.com o presso l'ufficio di SSGA locale.